Flybe warns jobs could go to cut costs in tough market

Daily Echo: Flybe chief executive Jim French Flybe chief executive Jim French

Southampton airport’s largest carrier today warned jobs may be at risk as it slashes costs after the most challenging conditions in its 10-year history sent it into the red.

Flybe outlined plans to make annual savings equivalent to £2 per seat as it said there was ''little sign of recovery'' in the UK domestic market.

It warned there may be some impact on its workforce - consisting of 3,000 staff in the UK, including 200 in Southampton, and up to 700 in Europe - as part of a group-wide review of costs, but will give further details in the new year.

Exeter-based carrier reported pre-tax losses of £1.3 million in the six months to September 30 against profits of £14.3 million a year earlier after being hit by sky-high fuel costs and falling numbers of fliers.

The group, which also flies from Bristol, Cardiff, Doncaster, Edinburgh and East Midlands, saw UK passenger numbers fall 3.6 per cent to 4 million in the half-year.

Its fuel costs leapt 22.7 per cent to £68.6 million, or from £8.73 to £11.06 per seat, and it said demand was being stifled by air passenger duty hikes.

The group said: ''Flybe is currently operating in possibly the most challenging conditions since its creation as a new-generation regional airline 10 years ago.

''The UK domestic aviation market has seen passenger numbers reduce by 20.6 per cent since 2007, UK air passenger duty increased by 160 per cent over the same period and fuel prices are at record annual highs.''

Jim French CBE, Flybe’s chairman and chief executive officer, said “The continuing challenges of the UK domestic aviation market further validate the importance of our decision to focus Flybe’s long-term strategy on rebalancing our route network by growing our European operations.”

He added: “While we recognise the current challenges being faced across the Group, we are addressing those challenges and believe that our long term strategy is one which will continue to rebalance our Group activities. We remain confident in Flybe’s future prospects.”

Group revenue remained similar to the first half of last year at £341m.

Comments (11)

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10:34am Thu 8 Nov 12

OSPREYSAINT says...

Here they go again, a periodical statement saying the same thing as they said in the last one.
Here they go again, a periodical statement saying the same thing as they said in the last one. OSPREYSAINT
  • Score: 0

10:55am Thu 8 Nov 12

alan.of.eastleigh says...

FlyBe need to realise that their pricing strategy is wrong. There is potential to fly to a European hub and then on to anywhere in the world from Southampton but because FlyBe insist on surcharging for every bag checked in it means that it is cheaper to get a taxi to London and fly from there.
FlyBe need to realise that their pricing strategy is wrong. There is potential to fly to a European hub and then on to anywhere in the world from Southampton but because FlyBe insist on surcharging for every bag checked in it means that it is cheaper to get a taxi to London and fly from there. alan.of.eastleigh
  • Score: 0

11:12am Thu 8 Nov 12

Subject48 says...

Or from another perspective.

If you charge £x per seat and only get your plane 1/2 full.

You could always charge £x-10+% and get your plane FULL everytime, thus remaining in profit AND saving your customers money.

What do I kow though. Im just a nobody.
Or from another perspective. If you charge £x per seat and only get your plane 1/2 full. You could always charge £x-10+% and get your plane FULL everytime, thus remaining in profit AND saving your customers money. What do I kow though. Im just a nobody. Subject48
  • Score: 0

11:35am Thu 8 Nov 12

Fieldbean says...

What a whinger, his company does not even pay fuel tax. If the planes didn't use so much fuel getting off the ground then maybe people could afford to fly and we would not be wrecking the environment.
What a whinger, his company does not even pay fuel tax. If the planes didn't use so much fuel getting off the ground then maybe people could afford to fly and we would not be wrecking the environment. Fieldbean
  • Score: 0

12:35pm Thu 8 Nov 12

southy says...

The collapse of Comet will be losing a lot more jobs in the UK.
The collapse of Comet will be losing a lot more jobs in the UK. southy
  • Score: 0

12:53pm Thu 8 Nov 12

ohec says...

If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.
If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences. ohec
  • Score: 0

1:32pm Thu 8 Nov 12

hulla baloo says...

ohec wrote:
If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.
I think is more about the taxation, especially on flights now.
[quote][p][bold]ohec[/bold] wrote: If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.[/p][/quote]I think is more about the taxation, especially on flights now. hulla baloo
  • Score: 0

1:50pm Thu 8 Nov 12

Shoong says...

southy wrote:
The collapse of Comet will be losing a lot more jobs in the UK.
That's true, but that's mainly down to Comet's management incompetence.

Maybe they can try the Cruise companies for work, after all, they seem to have bucked the trend when it came to your prediction of it being just a fad.
[quote][p][bold]southy[/bold] wrote: The collapse of Comet will be losing a lot more jobs in the UK.[/p][/quote]That's true, but that's mainly down to Comet's management incompetence. Maybe they can try the Cruise companies for work, after all, they seem to have bucked the trend when it came to your prediction of it being just a fad. Shoong
  • Score: 0

2:06pm Thu 8 Nov 12

Huffter says...

ohec wrote:
If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.
Busy is not much use if it's not profitable.
[quote][p][bold]ohec[/bold] wrote: If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.[/p][/quote]Busy is not much use if it's not profitable. Huffter
  • Score: 0

4:08pm Thu 8 Nov 12

ohec says...

Huffter wrote:
ohec wrote:
If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.
Busy is not much use if it's not profitable.
Little and often is the secret its better to make a little on each passenger on a full plane than make a little bit more on a half empty one, and that goes for buses trains everything a lot of people are priced out of jobs simply because of transport costs, my daughter in law comes from the far north of Scotland if she can get cheap flights they fly if not they drive so is it better to have a plane full or a hundred cars rumbling up the motorway, but the government don't look at it that way because either way they win tax tax tax yet we are supposed to believe they are concerned about the environment.
[quote][p][bold]Huffter[/bold] wrote: [quote][p][bold]ohec[/bold] wrote: If you look around the world wherever fares are cheap the service is busy but all we seem to do is keep putting fares up so numbers dwindle, we seem unable to grasp the concept of small profit big turnover. That and our wonderful government that seem to think any form of travel is ripe for taxation without realising the consequences.[/p][/quote]Busy is not much use if it's not profitable.[/p][/quote]Little and often is the secret its better to make a little on each passenger on a full plane than make a little bit more on a half empty one, and that goes for buses trains everything a lot of people are priced out of jobs simply because of transport costs, my daughter in law comes from the far north of Scotland if she can get cheap flights they fly if not they drive so is it better to have a plane full or a hundred cars rumbling up the motorway, but the government don't look at it that way because either way they win tax tax tax yet we are supposed to believe they are concerned about the environment. ohec
  • Score: 0

10:09pm Thu 8 Nov 12

Smeeinnit says...

I travel ALOT between Southampton and Manchester. Flights vary between £40-£80 each way.
Go to Virgin trains site and an advance ticket costs from £14 with a railcard.
.... It's a no brainer really.
I travel ALOT between Southampton and Manchester. Flights vary between £40-£80 each way. Go to Virgin trains site and an advance ticket costs from £14 with a railcard. .... It's a no brainer really. Smeeinnit
  • Score: 0

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